Ford Finally Turns a Profit

The latest news from the automobile industry.

Ford is back in the black, reporting a surprising second-quarter net profit of $750 million, The Detroit News reported. That compared to a net loss of $317 million for the same period last year.

Overall revenue, including the company's finance arm, rose 5% to $44.2 billion from $41.9 billion. Worldwide automotive revenue, which excludes Ford's finance arm, increased 6% to $40.1 billion from $37.8 billion. This is the second consecutive quarter in which this figure rose.

Ford's bottom line was helped by strong results in foreign markets, cost-cutting efforts at home, and the sale of Ford's Aston Martin brand, which it sold to a consortium for $925 million earlier this year.

"We continue to focus on the four priorities of our plan—restructuring the business to operate profitably, accelerating the development of new products that our customers want and value, funding our plan and improving our balance sheet, and working even more effectively together as one global Ford team, leveraging our assets," said Ford CEO Alan Mulally in a statement. "Our team is very encouraged by the significant progress we are making. We recognize the challenges that lie ahead and remain fully committed to delivering our plan."

Ford is 18 months into a sweeping restructuring plan that aims to return its struggling North American automobile operations to profitability by 2009. Those operations still lost $279 million during the second quarter.

In related news, Ford confirmed it is discussing the sale of its Jaguar and Land Rover brands, and is also conducting a "strategic review" of Volvo that it hopes to complete by the end of the year, the News noted.

Ford bought Jaguar in 1989 for $2.5 billion, but struggled to make it profitable. It bought Land Rover from BMW AG in 2000 for $2.9 billion.